Why Your Business Might Be Better Off in Secondary Space Right Now

The commercial property market in 2026 has a tale of two tiers. Prime space — newly built, well specified, EPC A or B rated, with good car parking and fast broadband — is in short supply and holding its price. Secondary space — older, less specified, often in secondary locations — is softer, with motivated landlords and genuine deals available.

For many small businesses, secondary space is where the real value is right now. Here is how to think about whether it could work for you.

What Is Secondary Commercial Space?

Secondary commercial property is broadly anything that is not the best available in a given market. It might be an older office building without air conditioning; an industrial unit with limited yard space; a retail unit on the secondary pitch of a high street rather than the prime pitch; a building with a lower EPC rating; or simply premises that have not been recently refurbished.

Secondary is not the same as unsuitable. Many businesses flourish in older, straightforward space and do not need the specification — or the price — that comes with prime.

Where the Value Is

Secondary space is undergoing a genuine pricing divergence from prime. Capital values on secondary stock are flat or slightly declining. Some landlords with EPC-compliance concerns or upcoming refinancing are motivated to let quickly, even at rents that represent real value relative to the market.

In practical terms, this means:

• Longer rent-free periods — three to twelve months on a five-year deal is achievable in many secondary markets
• Lower deposit requirements for tenants with a reasonable trading history
• Landlord contributions to fit-out in buildings that need work to attract occupiers
• More flexible lease terms — break clauses, shorter terms, and permitted use flexibility are all more negotiable

When Secondary Works Well

Secondary space tends to suit businesses that:

• Do not need to impress clients from the premises (back-office operations, production, storage, creative studios)
• Have the skills or resources to manage their own fit-out and maintenance
• Value flexibility over prestige — a shorter lease with a break clause in a secondary building may suit a growing business better than a long commitment in a prime one
• Are location-flexible — a business that can operate from a secondary pitch or an edge-of-town location rather than a prime town centre position can access significantly more value

When It Does Not

Secondary space is less suitable if:

• Clients visit regularly and the premises form part of your brand presentation
• The EPC rating means materially higher energy costs that erode the rent saving
• The location makes it genuinely harder to recruit or retain staff
• The building would need significant investment to be fit for purpose, and the landlord is unwilling to contribute

The test is simple: does the space, as it is or as it can reasonably be made, allow the business to operate effectively? If yes, the financial case for secondary space in 2026 is often compelling.

Due Diligence on Secondary Space

Before committing to a secondary property, check:

• EPC rating and trajectory. A D-rated building in 2026 may need to reach B by 2030 under current government policy. Will the landlord invest? If not, future occupation may become uncertain.
• Structural and mechanical condition. Older buildings can carry hidden maintenance obligations that fall to the tenant under a full repairing lease. A building survey or at least a thorough inspection before signing is essential.
• Business rates. The rateable value of a secondary property may not reflect its lower specification if the VOA assessment is based on older evidence. It is worth checking and, if the RV looks high, exploring a challenge.
• Landlord position. A landlord under financial pressure can be a good negotiating partner — but an unstable landlord is also a risk. Understanding who owns the property and their financial position is reasonable due diligence.

RE:match is a good place to find secondary space because motivated landlords and agents — those with something to fill — are exactly who responds on the platform. Post your requirement and see what comes back.

Post your requirement on RE:match — it takes a few minutes and costs nothing. Landlords and agents with matching space respond directly to your brief at rematch.co.uk.

FAQ: Secondary Commercial Space

What is the difference between prime and secondary commercial property? Prime commercial property is the best quality and best located in a given market — newly built, well specified, energy efficient, with strong transport links. Secondary is everything else. The gap in quality, rent, and landlord motivation between the two has widened significantly in 2025–2026.

Is secondary space cheaper to rent? Usually yes on headline rent, though total occupancy cost — including energy bills in less efficient buildings — should be compared carefully. The bigger advantage in the current market is often the lease terms and incentives available, rather than the headline rent alone.

Can I negotiate the same incentives on secondary space as on new space? In the current market, secondary space often offers more flexibility on lease terms than prime space does — motivated landlords and fewer competing occupiers mean break clauses, rent-free periods, and shorter terms are all more negotiable.

What should I check before taking secondary space? EPC rating and the landlord's upgrade intentions, building condition, service charge obligations, rateable value, and the landlord's financial position. A full repairing lease in a poorly maintained older building can generate significant dilapidations liability at lease end.